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Don't Buy The Hain Celestial Group

Carles Diaz Caron profile picture
Carles Diaz Caron


  • The Hain Celestial Group doesn't have any competitive advantage.
  • It is formed by a lot of very small brands.
  • The company has been selling itself to pay down debt.
  • It doesn't pay a dividend, and there's no dividend in sight.

Investment Thesis

The Hain Celestial Group (NASDAQ:HAIN) is a consumer packaged goods company living a bad moment. Revenues have been decreasing since the beginning of 2017, and it has nowhere to go if management does nothing to make changes to turn things around. It doesn't pay a dividend, and won't do so at least for a long, long time. Investors considering buying the stock should avoid to do it.

In this article, I am going to explain why this stock is a sell, and why any investor considering investing in Hain Celestial should look somewhere else.

A Brief Overview Of The Company

Hain Celestial Brands

Image Source: Food Bussiness News

The Hain Celestial Group is a fast-moving consumer goods company whose purpose is to become the leader in the healthy and organic food industry. Founded in 1993, it sells products in the healthy category of the shelves, such as Better Bean, Health Valley, and Earth's Best. These products correctly respond to recent consumer trends and will most likely find a bigger market size year after year.

Currently, the stock trades at a price of $30.75, which represents a 55.77% decline from its all-time high of $69.53 on July 16, 2015. Certainly, I consider the current price as a good entry point, especially for long-term investors. What actually makes me reconsider my position is trying to find the investment philosophy that would make an investor jump in.

ChartData by YCharts

A Major Acquirer Now Selling Itself

Hain Celestial Brand HeartImage Source: ESM Magazine

The Hain Celestial Group has been a major acquirer of small healthy brands of packaged foods. All of these acquisitions showed a clear vision of the company's commitment to provide consumers with A Healthier Way of Life. Through its history since its foundation in 1993, it has been systematically acquiring brands, forming what we know today

This article was written by

Carles Diaz Caron profile picture
Subscribe for an average ~20% return per year according to Tipranks. I am a long-term Dividend Growth Investor always looking for new opportunities in the stock market since 2015. In order to find good deals in the stock market, I look for companies that are going through a bad time and carefully assess the chances that the financial situation will return to the path of profitability and growth. My objective is to find stocks that can be bought and held for many years and try to get them for the lowest price possible during temporary headwinds. For me, the most important aspects when analyzing a stock's turnaround chances are that the company's products are essential to a big portion of the population, healthy and stable profit margins, a sustainable debt and dividend, and a long-term trend that suggests the products and services offered will continue to be essential for the decades to come.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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